Do I need sales tax and business ID's in Canada?

I am starting a dropshipping business and I am located in Canada.I will be shipping my items to Canada and the USA, possibly to other international locations as well.

I have read several articles about what is needed such as a tax number and business IDHowever, I am not sure if these are only required if you are located in the states, or will you need both of these if you are located in Canada as well?

rachel_ramos

Site Admin

Posts: 442

Joined: 10 Jun 14

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29 Sep 14 02:10:34 am

Hello Amanda,

Most states have a sales tax if you are in the US and Canada, but there are a couple that don't. If you reside in one of these states just let the wholesaler know and they may have a different form or requirement for you to complete. You will need a tax ID If you sell online to make money .

You need a seller's permit so you can charge and collect taxes, which you'll pay to your state government later. If you want to purchase goods wholesale from a US supplier (and you are also based in the US), you need a seller's permit to buy wholesale sales tax free.

It's always pretty important to ask your local government if you would need both a tax ID number and a business ID. Although it's not necessary for SaleHoo members to have a seller's permit and a registered business for them to use many of the suppliers in our directory, we strongly recommend you get one as it will give you access to even MORE wholesalers.